The federal government's universal pharmacare bill just passed, which means Canadians are one step closer to getting coverage for certain prescription medication.

On Friday, the Pharmacare Act received Royal Assent and immediately came into force, but that doesn't necessarily mean coverage starts right away.

According to Health Canada, Minister of Health Mark Holland will now work with provinces and territories to reach bilateral agreements to provide universal, single-payer, first-dollar access to a range of contraception and diabetes medications as part of the first phase of the national universal pharmacare program.

"Everyone in Canada deserves access to the care they need, including to prescription medications," said Holland in a statement.

"Our plan for universal access to contraception means reproductive freedom and choice and access to diabetes medication is a transformational step towards improving health outcomes and health equity in Canada."

It’s a huge day for 🇨🇦!

Our national pharmacare plan received royal assent - meaning we are one step closer to getting Canadians the diabetes medication and contraceptives they need. pic.twitter.com/QA5HEpIOFk

— Mark Holland (@markhollandlib) October 10, 2024

While the bill will immediately cover diabetes medication and contraception, it will also require Canada's Drug Agency to develop a list of essential drugs and related products to inform the development of a national formulary, which is a bulk purchasing strategy to help reduce drug prices.

"The Government of Canada will consult with provinces, territories, Indigenous Peoples, and other partners and stakeholders about the path forward to improve the accessibility, affordability, and appropriate use of pharmaceutical products," stated Health Canada.

The government agency says the legislation will provide free contraception to up to nine million women and gender-diverse people in Canada.

In addition, the 3.7 million Canadians living with diabetes will have universal access to medications that reduce the risk of serious health complications and improve quality of life.

British Columbia is the first province to sign a memorandum of understanding with the federal government to launch the pharmacare program.

In a G7 health ministers' meeting in Italy on Friday, Holland said he aims to secure pharmacare agreements with all provinces and territories by next spring.

The axed supply-and-confidence agreement between the NDP and the Liberals once hinged on universal pharmacare coming to fruition.